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Lord Freud

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Universal Credit Will Create a Benefits System We Are All Proud Of

Posted: 04/10/2012 00:00

Universal Credit will be with us next year. There have been questions raised lately and it's worth being clear about where we are, when it will come in, and how it will impact on people.

We are rolling out Universal Credit in Greater Manchester and Cheshire regions in April next year - six months before the start of the national roll-out in October. This is the start of a four-year process that will see eight million households move on to Universal Credit and benefit from it.

Universal Credit will create a benefits system that will secure the safety net we are all proud of - with £2 billion a year more in benefits paid out and around 900,000 children and adults being lifted out of poverty - and ensure people are actively helped by the Welfare State into independence.

Currently the system actively holds people back from getting into work and we have a duty to stop this.

By bringing together six major benefits, people will be able to manage their claims much more simply. The current risks people face by moving into work, and the fears they will be worse off, will go.

Universal Credit will remove the barriers that we have under the current system where starting a job means switching from one set of benefits to another and informing councils, Jobcentre Plus and the HMRC.

This mountain of paperwork alone is now enough to stop many people from moving into work. Under Universal Credit, claiming will be much simpler and the one benefit will stick with people as they move from unemployment and into work.

Many of the new rules under Universal Credit are designed to mimic work -whether that is self employed or paid employment - with much more accountability for both individuals and households.

For the small businesses where people also claim benefits, a requirement to do simple monthly reporting will help people keep a closer grip on their accounts and to budget effectively. In many cases it will also help people to grow their businesses. And in fact, I am working the Chartered Institute of Taxation to simplify the system for small businesses.

Most importantly of all, under Universal Credit people will know they are better off in work than on benefits.

We are working closely with Councils to as they introduce localised Council Tax support schemes. The speculation that these will undermine the work incentives in Universal Credit is misguided. It fails to take into account the increased earnings disregards in Universal Credit - the amount that someone can earn before their Universal Credit starts to be reduced.

As well as helping people to move into work, Universal Credit will get people online and closer to the jobs market.

Independent research carried out by Ipsos Mori, reveals that 78 per cent of working age benefit claimants say they use the internet already - clearly demonstrating that being online is suitable for most claimants.

However, we recognise that not everyone is ready to use online services and we are making sure that there will still be face-to-face and telephone support in place for those who need it.

We are working now with councils across Britain to have this support in place - and to ensure the skills people gain from learning to claim online also help them to look for work online.

Our IT programme for Universal Credit is on time and, in fact, and is already being tested by claimants. Rather than a big bang approach we will be rolling out Universal Credit gradually. Nor are not starting from scratch, we are using existing IT systems and building the extra capacity and capability as we need it.

We are working with other Government departments, councils, housing associations and community groups across the country to prepare people for the change. We will even establish a hotline for MPs as the benefit comes in to answer their questions.

Universal Credit is about to become a part of the lives of millions of people across Britain. It will simplify their benefits and ensure their path into work is much easier and clearer. I want everyone to embrace that.

 
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07:34 PM on 10/23/2012
UC will completely wipe-out thousands and thousands of small business start-ups and sole traders, of which I am one.

Lord Fraud says that "For the small businesses where people also claim benefits, a requirement to do simple monthly reporting will help people keep a closer grip on their accounts and to budget effectively."

Having looked at the small print this a substantial and I suspect deliberate distortion. The regulations in fact state that no monthly balance roll over will be permitted, which will simply kill all those businesses like me who have variable payments and sporadic payments from agencies and indeed expenses that span three months or more.

I doubt there is a single business anywhere in the world where all transactions are within the government's fantasy monthly cycle.
10:11 AM on 10/19/2012
UC will see support for disabled kids slashed. It's nothing but an odious policy designed for popularism while paying for tax cuts on the backs of themost vulnerable. Shameful stuff.
02:13 PM on 10/07/2012
truth is now they can stop you getting any benefits through on source instead of you being able to get some help in one of the 6 areas this credit replaces. now a no will mean no access to any of the benefits as the all read off the same system. the true way to get people off benefits is to create real jobs where they can generate funds to live a reasonable life. real jobs that have long term prospects, employment laws that build on feeling stable rather than moving to the attitude that they can be replaced easily (for those who will bleat about it being hard to terminate someones employment it isnt if youve done your job properly). the CONLIBDUM GOV is creating a nation of agency workers moving from one employer to the next never really settling or being able to make plans with limited rights.
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knightinchainmail
09:25 AM on 10/07/2012
Universal credits will not pay out an extra 2 billion pounds in welfare. It just centralises the more than 2 billion that was paid by local authorities in housing benefit etc. Lord Freud says that the IT programme is not using the big bang theory, but using the existing IT network. Remember what happened with that approach with family credits and passports ? That is definitely a 'Big Bang Theory' the system will not cope.

He goes on to say that being online will not be a problem for most working age claimants as 78% say they use the internet already, that means 22% don't out of 8 million claimants that is 1,760,000 working age claimants that do not use the internet, not counting the pensioners so the true figure may be as high as 3 million.

When people become unemployed or incapable of work I have found one of the first cutbacks is the phoneline. More and more really on PAYG mobiles to keep in touch. Does the government intend to roll out cable communications throughout britain, including rural areas? Will the cost of connecting to this network be added to benefits paid, as well as payments to ISP's ?

Come on Lord Freud as the saying goes:- "You can fool all of the people some of the time, and some of the people all of the time".
07:29 PM on 10/06/2012
He is living in cloud cuckoo land. I can forsee more crime because anyone who loses out will have to live somehow. There will be more people homeless because they have been evicted. Not all people can manage their money so have their money paid direct to landlord. When this comes in they are not going to budget for a month having to pay the rent etc.
12:53 PM on 10/06/2012
I wish that i could believe what he says,BUT we have seen & been on the recieving end of their so called promises before & have NEVER gained ONLY lost & every time at that !! THEY keep telling us that out of all the unemployed over 50% refuse to obtain work !! WELL let them back that up with PROOF !! if they came to my neck of the woods they would find the amount of available work is minimal,most are part time with minimal pay,this is absolutely NO USE to families or most people,most of these non jobs are between the hours of 10 am & 3 pm ensuring that it is ALMOST impossible to have more than one job,as other companies also want these times or that their work hours overlap those of others,plus what is not told is that when having a part time job is the amount the DWP deduct from any benefit they may pay out,my own daughter (a mother of 3) who was left in the lurch by the childrens father,rather than claiming benefit decided to obtain part time work,firstly the times they wanted her were usually when the children were at home or when they were due home from school OR week ends,when finally finding a job (almost 8 months later) the DWP stopped all but £37.00 a week from her benefit,SO with what she earnt + DWP payment she had £103.37 !
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11:00 AM on 10/05/2012
Oh dear. Oh dear. Oh dear - Oh dear - Oh dear.
These words are going to hang around this man's neck like the proverbial albatross. This is all the work of a fantasist – he's like someone cheering on a bus driver to drive off a cliff "faster, faster, faster" - because well, the bus could sprout wings at the last second.
10:25 AM on 10/05/2012
I like the sound of this, my wife and I run a small business its yet to make us any income, all we get is £85 a week Tax Credits and subsidised rent in housing benefit we still have to make up a shortfall which comes out of the tax credits, we are not entitled to any other benefits which means that people that refuse to work are getting nearly twice as much as we are, from what we have read universal benefit will make us twice as much income as we now get. We live on £65 a week, its not easy but I wish they would roll this benefit out faster
01:01 PM on 10/05/2012
Unless you're one of the 1,000,000 who will lose out!
http://www.guardian.co.uk/politics/2012/oct/04/million-working-adults-benefits-cuts?fb=native&CMP=FBCNETTXT9038
04:45 PM on 10/05/2012
I spoke to my local MP about this today, he says this article is not just wrong but seriously wrong, in fact he wrote me a letter guaranteeing my money at the higher rate, OK we have to give activity monthly we both think thats a great idea helps us focus on the core activities but its miles better than not having a job and next year we start to make real money anyway, it takes time to build a business they don't happen instantly
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10:30 PM on 10/04/2012
There is a glaring contradiction in what Freud is saying: he is talking about "mountain of paperwork" and "existing IT systems". How can you have both?
10:01 PM on 10/04/2012
Is there a spelling mistake here surely it should say Lord Fraud ? ?
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Thismortalcoil
Science is the poetry of reality
09:47 PM on 10/04/2012
Was Freud drunk when he wrote this or is he just not very bright?

It is full of glaring typos. 'We are working closely with Councils to'...(should be a lower case 'c' and should be 'too'). And what does 'Nor are not starting from scratch' mean?

My favourite line is: 'Our IT programme for Universal Credit is on time and, in fact, and is already being tested by claimants.'

It is frightening to think that someone this sloppy is the Minister for Welfare Reform. It is frightening to think that someone this sloppy could affect the lives of millions of people.
08:11 PM on 10/04/2012
SORRY but I would not & do not believe a word they say !! they are proven accomplished liers & once a lier ALWAYS a lier !! & as such would not believe them telling me day follows night !!!
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07:32 PM on 10/04/2012
lord freud and iain ducan smith while well intentioned do not understand the benefits culture :they think they do but alas they do not .like men can not know the pain of childbirth.
Yesterday members of his team finally agreed the child care subsidy was higher than the earnings
potential of a single parent . So it would not be viable in economic terms if the wages of the single parent could not cover childcare costs. obviuosly it does not pay to work..
paying people monthly is a dumb idea again indicative of rich men not understanding how poor people live and struggle below the poverty line..all the money will be gone before the end of the
month its human nature..................BAD IDEA CHAPS....................................
08:37 PM on 10/04/2012
i can guess child birth smarts a little for a while.
As for monthly credits, why not? if you are saying they cant budget then perhaps a rethink on where the money is paid. One of the worst changes was to pay the rent to the tenant instead of the landlord. money ws spent on sky tv, internet, playstations & holidays before the landlord sees their cut.
Its not about not rich not understanding, its the claiments having wrong priorities
09:49 PM on 10/04/2012
Not all!!
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Sue Harvey
07:28 AM on 10/05/2012
I agree about paying the landlord directly. Many people are hopeless at managing their money and will get in arrears with rent and bills. However, if the money is paid directly, to the landlord, then strict rules should be in place to safeguard the maintenance of the property, by both parties.
Homes used to all boast a tin money-box, divided into half a dozen sections and clearly marked with: gas, electricity, insurance man, rent, etc. Mother would usually take her husband's pay-packet and give him pocket-money. The rest she would divide up in the tin box. No credit cards, no HP, no bank. Cash only.
06:56 PM on 10/04/2012
OOPS! Second rule of journalism has just been broken, in the headline. (Never end a sentence with a preposition.)
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Sue Harvey
07:30 AM on 10/05/2012
Poetic licence, just as used in the rest of his report.